a. What are the total expected cash collections for the year under this revised budget?

b. What is the total required production for the year under this revised budget?

c. What is the total cost of raw materials to be purchased for the year under this revised budget?

d. What are the total expected cash disbursements for raw materials for the year under this revised budget?

e. After seeing this revised budget, the production manager cautioned that due to the current production constraint, a complex milling machine, the plant can produce no more than 90,000 units in any one quarter. Is this a potential problem?

The company has just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the selling price from $8 to $7. The marketing manager would like to use the following projections in the budget: Data Budgeted unit sales Selling price per unit 1 50,000 $7 Year 2 Quarter 2 3 70,000 115,000 4 75,000 Year 3 Quarter 2 80,000 90,000 B C D E F G 1 Chapter 8: Applying Excel Data 2 70,000 2 3 115,000 Year 3 Quarter 1 80,000 / 4 75,000 5 Budgeted unit sales 50,000 90,000 Selling price per unit $ 7 per unit $ 65,000 75% 25% 11 13 1. Accounts receivable, beginning balance 9 . Sales collected in the quarter sales are made 10 Sales collected in the quarter after sales are made 1. Desired ending finished goods inventory is 12 . Finished goods inventory, beginning Raw materials required to produce one unit Desired ending inventory of raw materials is Raw materials inventory, beginning Raw material costs Raw materials purchases are paid 17 and Accounts payable for raw materials, beginning 19 balance 14 30% 12,000 5 10% 23,000 0.80 60% 40% of the budgeted unit sales of the next quarter units pounds of the next quarter's production needs pounds per pound in the quarter the purchases are made in the quarter following purchase 15 $ 16 18 s 81 500